You may have recently seen Get My Refund on A Current Affair – shining a light on how 2.7 million Australians are eligible for a share in billions of dollars worth of refunds following a finding in the banking royal commission.
We were interviewed as a result of the work we’ve done to get consumers refunds from irresponsible lending and being the pioneers of junk insurance refunds in Australia.
But there’s still so much more money out there to be claimed.
After the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry released their final report back in 2019 – it was revealed that millions of Australians had been duped into buying junk insurance.
But while $5.6 billion has already been paid out to seven million consumers, findings released by the Australia Securities and Investments Commission (ASIC) in September revealed there was still $1.6 billion owing to 2.7 million Australians for “fees for no service misconduct or non-compliant advice” as well as ”junk insurance” cashback payments.
But just what is junk Insurance?
Junk insurance refers to ‘add-on’ insurance products that provide little or no value to customers with some being sold policies they aren’t even eligible to claim on.
It’s not just banks selling junk insurance policies to consumers but also car dealers, retailers and insurers.
A popular example is Consumer Credit Insurance (CCI), which has been historically added-on to credit cards, personal loans and home loans.
CCI is usually marketed or sold to customers as a way for them to protect against default. But an ASIC review of CCI found these policies offer “very low value” to consumers.
There’s also Guaranteed Asset Protection (GAP), which is designed to cover the shortfall between an insurance payout and the money you owe on your car finance, should it be written off.
Mechanical Breakdown Insurance (MBI) is additional coverage on manufacturer parts for your vehicle sounds but it can’t be claimed until your manufacturer warranty is over. So you can find yourself paying for it for years without any ability to use it.
Mortgage Protection Insurance, which covers mortgage costs if you die, despite being benefition is also often classed as junk insurance due to the minimal payout level.
You may not even know you have junk insurance on your policy
As seen in the A Current Affair story, Brisbane truck driver Glen Cordell is a great example of how this costly insurance was added to his policy.
He was irresponsibly loaned money to purchase a ute for his business. He had consumer credit insurance added on without his knowledge, and faced severe financial hardship as a result and suffers major trust issues.
Another great example of one of our other clients featured on A Current Affair is Sydneysider Natalie Giezekamp, who works in the finance industry, and was completely unaware she was also paying for consumer credit insurance on her credit card.
Both Glen and Natalie also couldn’t even claim on the insurance because their respective employment status made them ineligible.
What can you do?
With irresponsible lending and junk insurance pushing many vulnerable Australians into even deeper financial hardship – at a time when cost of living increases are becoming almost unbearable for some – action needs to be taken.
Anyone who has held a loan or credit card is eligible to begin the remediation process by filling out an online form.
Both Glen and Natalie came to Get My Refund for help and we discovered Natalie was owed $1,700 and Glen was owed $16,000.
But they aren’t the only ones. Here at Get My Refund we’ve found claims for irresponsible lending have increased significantly over the last 12 months, now accounting for more than one in five new claims (20%).
In just over three years, the number of people impacted has more than doubled – close to 40 per cent coming from Australia’s big four banks.
While the average claim we handle results in a refund of $14,200, we’ve had people getting back upwards of $45,000 in refunds from irresponsible lending and junk insurance.
The professionals at Get My Refund can assist you with getting back more of what is owed to you. We specialise in assisting victims of these non-compliant and unethical financial practices, creating tailored approaches to assess your position and building the most appropriate solutions to recover your money.
If you believe you may be entitled to compensation from one of the six banks and financial institutions mentioned above, or any other dubious financial institution, such as insurance providers and lenders, make the smarter choice in retaining your refund by starting your claim today. To learn more about our proven track record for helping our clients across Australia, please contact us today by calling (02) 9156 1000.
LINK TO CURRENT AFFAIR GET MY REFUND – Junk Insurance